contents...ended february 28, 2021, together with the reports of the directors and auditors thereon,...

Notice of Annual General Meeting

Chairman’s Report

Directors’ Report

Management Discussion & Analysis

Corporate Governance

Board of Directors

Senior Management

Shareholdings

Audited Financial Statements

Statement of Financial Position

Statement of Profit or Loss and Other Comprehensive Income

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Contents

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Our Products

BULK ICE CREAM

Perfect for ‘fudgies’ (mobile

vendors), parties, schools or large

events, with 20 flavours including:

Rum and Raisin, Grapenut, Orange-

Pineapple, Stout, and Coffee Rum

Cream.

FROZEN NOVELTIES

Our line of frosty treats are sweet

and irresistible for both children and

adults alike. Memorable moments

are guaranteed every time you

unwrap one of our: Grape, Sour

Cherry, Kola Champagne, Green

Apple, and Watermelon flavours!

ICE CREAM CAKES

Ideal for an individual treat or an

on-the-go snack!

ICE CREAM TUBS

Conveniently packaged for the

entire family to enjoy at home! Our

wide range of flavours are available

in supermarkets and convenience

stores island-wide.

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Notice of Annual

General Meeting

NOTICE IS HEREBY GIVEN that the 2021 Annual

General Meeting of CARIBBEAN CREAM LIMITED

will be held at the Knutsford Court Hotel,

16 Chelsea Avenue, Kingston 5, New Kingston

on Tuesday, October 26, 2021, at 10 a.m. for the

purpose of transacting the following business:

1. To receive the Audited Accounts for the year

ended February 28, 2021, together with

the reports of the Directors and Auditors

thereon,

The Company is asked to consider, and if

thought fit, pass the following resolution:

Resolution No. 1

“That the Audited Accounts for the year

ended February 28, 2021, together with

the reports of the Directors and Auditors

thereon, be and are hereby adopted.”

2. To elect Directors.

(i) The Directors retiring by rotation in

accordance with Regulation 105 of the

Company’s Articles of Incorporation are

Mrs. Carol Clarke Webster, Wayne Wray

and Mark McKenzie, who being eligible

for re-election, offer themselves for re-

election.

To consider, and if thought fit, pass the

following resolutions:

Resolution No. 2

“That Carol Clarke Webster be and is hereby

re-elected as a Director of the Company.”

Resolution No. 3

“That Wayne Wray be and is hereby re-

elected as a Director of the Company.”

Resolution No. 4

“That Mark McKenzie be and is hereby re-

elected as a Director of the Company.”

3. To ratify interim dividends The Company is

asked to consider, and if thought fit, to pass

the following resolutions:

Resolution No. 5

“That the interim dividend of $0.029 paid on

October 2, 2020 be and is hereby ratified

and declared final for 2020.”

Resolution No. 6

“That the interim dividend of $0.0694 paid

on July 14, 2021 be and is hereby ratified and

declared final for 2021.”

4. To approve the remuneration of the

Directors. The Company is asked to consider,

and if thought fit, to pass the following

resolution:

Resolution No. 7

“That the amount shown in the Audited

Accounts of the Company for the year ended

February 28, 2021 as fees of the Directors

for their services as Directors, be and are

hereby approved.”

5. To appoint Auditors and to authorise the

Directors to fix the remuneration of the

Auditors.

The Company is asked to consider, and if

thought fit, pass the following resolution:

Resolution No. 8

“That the remuneration of the Auditors,

KPMG, Chartered Accountants, who have

signified their willingness to continue in

office, be such as may be agreed between

the Directors of the Company and the

Auditors.”

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Special Resolution

6. To amend the Articles of Incorporation

The Company is asked to consider, and if thought

fit, pass the following special resolution:

Resolution No. 9

“That the Articles of Incorporation of the

Company be and are hereby amended by

revisions to Schedule II as shown below”:

Amending Article 1- Under the definition of

“Electronic Means” to read:

Electronic Means - means any method of

dispatch, or communication of video and

audio, including live streams and broadcasts,

documents, words, writing, maps, photography,

graphs, plans or other data which involves

the use of equipment or technology having

electrical, digital, magnetic, wireless, optical,

electromagnetic, photographic, or similar

capabilities including, but not limited to,

telephonic facilities, including facsimile machines,

electronic mail sent via computers, mobile or

scanning devices, instant messages via mobile

devices, short message services or via the

internet.

Wherein these Articles it is provided that

members may attend a meeting of the company

by electronic means or by way of live stream or

broadcast, the relevant computer programme

or software (including webcasting, video

conferencing, teleconferencing, a combination

of those and/or other electronic platforms), must

allow members access to see and hear the

proceedings; ask questions; vote electronically

(including before and during the meeting and by

proxy); and in all respects, fully participate and

exercise such rights, subject to the Chairman’s

directions, for the orderly conduct of the meeting.

Insertion of new Articles numbered 55, 56 and 57

under the heading “General Meetings” to read:

55. The Company may hold its annual general

meeting or any extraordinary general

meeting in any of the following manners:

(a) Members present at the same physical

venue; or

(b) Members present at a physical venue

together with members in attendance by

electronic means; or

(c) Members in attendance entirely by

electronic means.

56. A member who participated in a meeting

in accordance with Article 55 shall

(notwithstanding being absent from the

Island or otherwise remote from the venue

of the meeting), be deemed to be present in

person at the meeting and shall be counted

for in the quorum, and be entitled to vote at

the meeting.

57. Any failure of technology or any failure

or inability of a member to remain in any

meeting convened, in accordance with

Article 55, shall not invalidate any resolutions

passed, or proceedings taken at such

meeting, provided that a quorum is present

at all times.

Amending Article 72 under the heading “Votes of

Members” to read:

On a poll votes may be given either personally,

by proxy or by the established electronic means

(as communicated through the relevant notices,

to include e-mail instructions and any other

electronic means of instructions for any such

meeting) but no member shall be entitled to

appoint more than one proxy to attend the same

meeting.

Amending Article 150 under the heading

“Notices” to read:

Any notice to be given or any document required

to be sent by the Company to any member may

be:

1. (a) sent to him personally in writing or by

electronic format;

(b) sent by post to him or to his registered

address, or (if he has no registered

address within Jamaica) to the address

if any, within Jamaica supplied by him to

the Company for the giving of notice to

him in writing or electronic format; or

(c) sent to him by electronic means; or

(d) sent to him by advertisement in a daily

newspaper circulating in Jamaica; or

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(e) sent to him by publishing such notice

on the company’s website and/or such

other websites available to public

companies from time to time for the

dissemination of information.

PROVIDED HOWEVER that where such notice

or document is specifically required by law or

these Articles to be sent in writing (otherwise

than in electronic format, by electronic means,

by advertisement or on a website) the Company

shall obtain the member’s written consent prior

to sending same to him/her in electronic format,

by electronic means, by advertisement or on a

website.

2. Where a notice is sent by post, service of the

notice shall be deemed to be effected by

properly addressing, prepaying and posting

a letter containing the notice, and to have

been effected in the case of a notice of a

meeting at the expiration of forty-eight (48)

hours after the letter containing the same is

posted, and in any other case at the time at

which the letter would have been delivered

in the ordinary course of post.

3. Where a notice or document is sent by

electronic means service of the notice or

document shall be deemed to be effected by

properly dispatching the notice or document

to the email address, any other electronic

address or by facsimile, internet, or, by short

message service to the number provided by

the member, and is deemed to be received

by the intended recipient at the expiration

of twenty-four (24) hours after the notice, or

document is so dispatched by the Company.

4. Where a notice is published in a daily

newspaper it shall be deemed to be served

on the date of publication.

5. Where a notice is published on the

company’s website or such other websites

available to public companies from time to

time for dissemination of information, the

notice shall be deemed to be served on the

date on which the notice is published, on

such website.

Renumbering of Existing Articles

By renumbering of existing articles [55 to 154]

(inclusive) as articles [58 to 157] respectively.

Dated July 19, 2021

By Order of the Board

_________________________

Denise Douglas

Company Secretary

Registered Office

3 South Road

Kingston 10

NOTE:

1. A member entitled to attend and vote at the

meeting may appoint a proxy, who need not

be a member to attend, and so, on a poll,

vote on his/her behalf. A suitable form of

proxy is enclosed. Forms of Proxy must be

lodged with the Registrar of The Company,

Jamaica Central Securities Depository, 40

Harbour Street, Kingston, not less than 48

hours before the time of the meeting.

2. A Corporate shareholder may (instead of

appointing a proxy) appoint a representative

in accordance with Regulation 75 of the

Company’s Articles of Incorporation. A copy

of Regulation 75 is set out on the enclosed

detachable proxy form.

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Company Profile

Caribbean Cream Limited (CCL), through its brand Kremi, has grown significantly over the past 15 years since it first acquired and instaled an ice cream mix plant at 11 Derrymore Road, Kingston 10, under the leadership of Christopher Clarke, Chairman & CEO.

This continuous growth, primarily facilitated

by an injection of capital from investors on the

Jamaica Junior Stock Exchange eight years ago,

has enabled the company to recruit and train

personnel to operate and maintain our state-

of-the-art machinery for greater efficiency and

reliability.

CCL was born out of a need to supply the local

market with a high quality, but less expensive,

ice cream, other than the premium Devon House

brand. So Scoops Un-Limited Limited, producers

of Devon House ice cream, set up CCL to service

that new market.

On his return to the island after studying

abroad, Christopher Clarke spearheaded the

development of a formula for an inexpensive,

but superior ice cream mix, on behalf of Scoops

Un-limited Limited. The response to the product

from the local market was overwhelming and

the Board of Scoops Un-limited Limited took the

decision to separate the brands and start CCL

to manufacture and market the Kremi standard

product. Three years later, Caribbean Cream

Limited outgrew its Derrymore Road premises

and relocated to its current premises at 3 South

Road in Kencot, Kingston 10.

Today, Kremi distributes most of its products,

through wholesale, modern trade and retail

outlets, as well as by mobile vendors, known

locally as ‘Fudgies’.

The vision of the company is to maintain the

tasty tradition of success, by being the number

one ice cream manufacturer in the caribbean.

The journey to that goal continues to be carefully

guided by a Board of Directors, comprising

astute professionals, who seek to empower the

management team and staff to grow beyond

borders.

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While global and local trade came to a halt in

2020 because of COVID-19, the year was a

remarkable one for Caribbean Cream Limited in

that we realised a significant increase in sales

and profit.

During a national lockdown, aimed at curbing

the spread of the deadly virus, the majority of

Jamaicans were ordered by Government to

work and study from home to maintain social

distancing. However, we relieved the stress

that came with the ‘stay at home’ order, as

the demand for comfort food grew beyond

expectation. The Kremi business model, where

‘fudgies’ sell our products from their motor bikes

in communities off the beaten track, proved to

be a major contributor to our sustainability as

we were able to respond immediately to the

demands for delivery of ice cream and novelties

directly to our customers’ doors.

During that time also, we were fortunate to have

avoided any disruptions in our production levels

or supplies schedule, due to good planning,

sacrifice and some luck.

Amid the uncertainties, we also opened a

new depot in Ocho Rios to increase our reach

in that north coast town and the immediate

surroundings. In addition, we began an ambitious

project to install a combined heat and power

plant to reduce CCL’s utility expenses. We

successfully negotiated and secured additional

funding with appropriate terms for our major

capital expenditure (CAPEX) projects, which will

be implemented over two years.

Our management team and staff have been

the heroes of our operation during what was

considered a challenging time for the nation on

a whole and the business sector in particular.

We, therefore, want to publicly thank them for

the support, which sometimes went beyond the

call of duty, and look forward to growing Kremi

to fulfill our dream of CCL being the leading ice

cream manufacturer in the region.

_________________________

Christopher ClarkeChairman & CEO

Chairman’s Report

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While global and local

trade came to a halt

in 2020 because of

COVID-19, the year

was a remarkable one

for Caribbean Cream

Limited ...

“

“

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Directors’ Report

The Directors are pleased to present their report

for the financial year ended February 28, 2021.

The following are highlights of the Audited

Financial statements:

Year ended

Feb 2021

$‘000

Year ended

Feb 2020

$‘000

Revenue 1,870,188 1,706,359

Gross Profit 625,139 545,612

Profit before

taxation 118,500 62,172

Profit,

being total

comprehensive

income for the

year 100,681 54,569

Net Current

Assets 223,490 73,635

Accumulated

profits 722,521 632,819

Earnings per

stock unit $0.27 $0.14

The Directors as at February 28, 2021 were as

follows:

Christopher Clarke Wayne Wray

Carol Clarke Webster Mark McKenzie

Matthew Clarke Michael Vaccianna

In accordance with Regulation 105 of the

Company’s Articles of Incorporation, Directors

Carol Clarke Webster, Wayne Wray and Mark

McKenzie will retire by rotation and, being

eligible, offer themselves for re-election.

Dividend

A dividend of $0.029 per share was paid on

October 2, 2020 to shareholders registered at

the close of business on September 16, 2020. A

dividend of $0.0694 per share was paid on July

14, 2021 to shareholders registered at the close

of business on June 29, 2021.

Auditors

The company auditors, KPMG, Chartered

Accountants, have indicated a willingness to

continue in office pursuant with the provisions of

Section 154(2) of the Companies Act.

The Directors wish to place on record their

appreciation and recognition of the dedicated

efforts and hard work given by the officers and

staff of the company.

FOR AND ON BEHALF OF THE BOARD OF

DIRECTORS

Christopher Clarke

Chairman & CEO

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Company Data &

Advisors

Registered Office

3 South Road, Kingston 10

Registrar and Secretarial Agents

Jamaica Central Securities Depository

40 Harbour Street, Kingston

Company Secretary

Denise Douglas

External Auditors

KPMG

Chartered Accountants

6 Duke Street, Kingston

Internal Auditors

Baker Tilly Strachan Lafayette


14 Ruthven Road, Kingston 10

Attorneys-At-Law

Young Law, Attorneys-at-Law

Unit 14, Braemar Suites

1D-1E Braemar Avenue

Kingston 10

Bankers

Bank of Nova Scotia Jamaica Limited

CIBC FirstCaribbean International Bank

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Company Profile

Caribbean Cream Limited (CCL) is incorporated

and domiciled in Jamaica and is listed on the

Junior Market of the Jamaica Stock Exchange

(JSE). CCL’s registered office is located at 3

South Road, Kingston 10, Jamaica.

As of February 2021, Scoops Unlimited, Limited,

a company incorporated and domiciled in

Jamaica, and its Directors, controlled CCL by

virtue of their direct holding of 78% of the issued

shares.

CCL’s principal activities are the manufacture and

sale of ice cream and novelties under the Kremi

brand and the importation and distribution of

frozen novelties.

CCL’s disclosure of financial information in the Management Discussion & Analysis (MD&A)

The Management of CCL is responsible for

the integrity and reliability of the information

contained in the MD&A. The financial information

disclosed in the MD&A agrees with the

requirements of the auditor’s report included in

the Audited financial Statement and which have

been approved by the Audit Committee and

Board of Directors.

The purpose of the MD&A is to provide all

Stakeholders with valuable and constructive

information regarding CCL’s past year

performance and outlook for the future. The

amounts reported are in Jamaican dollars and

were derived mainly from the enclosed Audited

Financial Statements.

Economic Environment

At the beginning of our financial year, the

world and the country were facing uncertain

times with the very challenging effects of the

COVID-19 pandemic. Like other organisations

CCL complied with the protocols laid out by the

Government of Jamaica and Ministry of Health

& Wellness. Despite staffing challenges with

community and self-quarantines, we managed to

keep the market supplied with our products.

Jamaica, like all other countries around the world,

grappled with the pandemic-induced shutdowns,

quarantines, fear within the population, and a

consequent dramatic fall in business revenues

and consequently productivity, and of course,

GDP. Jamaica and many Small Island Developing

States (SIDS) and tourism dependent economies

have felt that downturn right into Summer 2021.

Despite this force majeure situation, everyone

has sought a way to live and work. Our team

members have sacrificed to keep our company

in full operation, some even suffering the worst

of the COVID-19 symptoms, while others covered

for those who were in quarantine.

Depression has become a part of the

environment in which we work and managing

people in that mindset has presented new

challenges for every leader. Tropical storms

and weather events in August, October and

November, the gun murder of one colleague

just before he left for work, and power supply

issues added to our challenges, and our team

responded.

Despite all the above, interestingly, the demand

for CCL products never abated, which has

been a blessing for our company. Nonetheless,

the increased demand has put our entire

organisation under greater duress, and to their

credit, our people responded, by delivering

beyond our expectations.

CCL has worked to support our team members

and customers by:

• Enforcing the COVID-19 protocols

• Issuing masks to every staff member

• Installing hand-wash stations

• Doing temperature checks

• Hiring additional transportation to move

people to and from work during quarantines

• Utilising work from home arrangements by

purchasing and allocating laptops for those

working from home

• Holding online meetings with employees

and customers, even when on site, to reduce

gatherings

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• Utilising WhatsApp groups to keep teams

more readily informed

• Making extra deliveries of goods in smaller

amounts to keep depots and mid-level

customers supplied as we played catch-up

at times

• Completing the planned opening of our

Ocho Rios depot

• Formal and informal counselling

• Holding chats in smaller groups to keep

personnel updated in the changing

environment, to be followed in the new fiscal

year by town hall meetings.

This year’s journey has been both challenging

and rewarding. Challenging, though no different

to that of any other business, but also rewarding,

because our customers remained with us

Net Profit before & after tax

180

160

140

120

100

80

60

40

20

0 2015 2016 2017 2018 2019 2020 2021

Net profit before tax Net Profit after tax

Financial Year End February

J$’ M

illio

ns

60 | 60

167 | 167176 | 176

90 | 90

103

62

119

89

55

101

throughout this unprecedented time, which

provided our livelihood and resultant growth for

CCL and its shareholders.

Financial Performance Overview

As indicated above, with the uncertainties of

COVID-19, the strategy of CCL was to pursue

key initiatives whilst being conscious of its

environment.

CCL achieved Net Profit before tax totalling

$118.5m, an increase of $56m or 91% above

the previous year. Taxes for the year amounted

to $17.8 million giving rise to Profit After Tax of

$100.7m. Earnings per share for the year were

$0.27.

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Sales Revenue

Sales revenue for the year was $1,870 million, compared to the previous year’s revenue of $1,706

million, representing an increase of $164 million or 10%. The company was able to increase sales during

the pandemic due to our distribution model that delivers products directly to neighbourhoods and

communities. There was an increase in demand for comfort food, including ice cream. Additionally, our

Ocho Rios depot was opened in late September to serve the town and surrounding communities.

Sales Revenue

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0 2015 2016 2017 2018 2019 2020 2021


J$’ M

illio

ns

1,013

1,1351,214

1,373

1,553

1,706

1,870

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Cost of Operating Revenue (COR)

CCL continues the initiative of improving operational efficiencies, adding the Ocho Rios depot for

greater sales revenue, outsourcing some of our workforce, to name a few. In the past year, the COR was

$1,245 million, an increase of $84 million or 7% above the previous year and lower than our 10% sales

increase. Major contributors were: (1) Raw materials and consumables by $34 million or 5%, due to local

raw material and overseas purchases as well as an average 16% decline in the rate of the Jamaican

dollar to the major currencies. (2) Utilities increased by $39 million or 34%. This was driven by higher

production levels and a hike in the fuel and foreign exchange portions of the electricity bills. (3) Other

costs increased by $48 million or 55% resulting from: (i) Reclassification of cost for disposal of waste and

fats, which were from cleaning and sanitation, (ii) Outsourcing of general labour and (iii) Higher duties

and storage costs due to higher volumes of imported novelties.

Cost of Operating Revenue (COR)

1,400

1,200

1,000

800

600

400

200

0 2015 2016 2017 2018 2019 2020 2021


J$’ M

illio

ns 734

681

752

953

1,033

1,161

1,245

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Operating Expenses

While managing our expenses despite the

pandemic, total administrative and selling and

distribution expenses were $488 million, an

increase of $25 million or 5% over the previous

year’s expense of $464 million. The main

contributors were: –

1. Utilities – Overall rate increase from JPS as

well as volume driven utility costs for the

new depot in Ocho Rios; and sub franchise

in Portmore.

2. Professional fees – The implementation of

the shared-service structure is expected


Total Assets Less Current Liabilities

The company continues to maintain a positive financial position where Total Assets Less Current

liabilities at the end of the year was $1,142 million, an increase of $200 million or 22% above the

previous year. This came about by the continued expansion of capital investments and efficient working

capital management.

Total Assets Less Current Liabilities

1,200

1,000

800

600

400

200

0 2015 2016 2017 2018 2019 2020 2021


J$’ M

illio

ns

372

515

652701

847

942

1,142

to rationalise the cost of technical and

professional staff resources over time.

CCL’s management continued its focus on

improving efficiencies, cost containment

and strategic alignment of operations with

our long-term objectives, despite incurring

new expenses in sanitation supplies and

transportation costs for staff during the

pandemic. With the impact of COVID-19,

our priority was to ensure the health and

safety of the employees whilst keeping

our customers supplied and managing to

maintain jobs.

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Liquidity

Cash and cash equivalents were $217 million, an increase of $29 million or 16% over last year. Trade

and other receivables increased by $35 million or 61% as typically high weekend sales fell at the end of

the financial year.

Financial Years end February

2015 2016 2017 2018 2019 2020 2021

J$’ Thousands

Cash & cash

equivalents

1,757 152,523 176,182 174,735 129,995 129,197 217,284

Equity and Non-Current Liabilities

Total equity and non-current liabilities increased

by $200 million or 22% and this was due to the

following:

(i) Refinancing of long-term loans and

additional funds acquired for major

upcoming capital investments.

(ii) Increase in lease liability.

(iii) Accumulated Profits increased by $90

million or 15% which represented profit

generated, but not distributed, that was

retained and reinvested in CCL.

Risk Management and Internal Controls

The Board of Directors has overall responsibility

for the establishment and oversight of CCL’s risk

management framework. The Audit Committee

assists the Board with this function.

CCL’s principal business activities – manufacture

and sale of ice cream and novelties, are by

their nature, highly competitive and subject to

various risks. These include fraud, credit, liquidity,

currency, and interest rates. An explanation of

these risks is mentioned below. A more detailed

report is included in the Audited Financial

Statements.

The primary goal of CCL’s risk management is to

ensure that the outcomes of risk-taking activities

are predictable and consistent with our strategies

and objectives and that there is an appropriate

balance between risk and reward to maximize

shareholders’ returns.

Fraud Risk

The organisational structure and reporting lines

allow for separation of duties, which enables us

to manage the process and prevent incidents

of fraud. An ongoing adherence to accounting

policies for reconciliations of cash and non-cash

items and observance of standard operating

procedures in the manufacturing process.

Periodically, an accounting firm is contracted to

conduct an internal audit of critical processes

and the management of same.

Knowledgeable senior managers in the sales

and manufacturing process provide hands on

supervision over operations. The organisational

structure and reporting lines allow for separation

of duties.

Credit Risk

Credit Risk is the risk of financial loss to CCL

if a customer or counter party to a financial

instrument fails to meet its contractual

obligations and arises principally from the

company’s receivables from customers and

cash and cash equivalents. CCL does not

require collateral when providing credit to

customers. Management has a credit policy in

place to minimise exposure to credit risks. Credit

evaluations are performed on all customers

requiring credit.

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CCL’s exposure to Credit Risk is influenced

mainly by the individual characteristics of each

customer. The maximum exposure to Credit Risk

is represented by the carrying amount of each

financial asset at the reporting date.

Liquidity Risk

Liquidity Risk is the risk that CCL will not be

able to meet its financial obligations as they

fall due. Our approach to managing liquidity is

to ensure, as far as possible, that it will always

have sufficient liquid resources to meet its

financial liabilities when due, under both normal

and stressed conditions, without incurring

unacceptable losses or risking damage to its

reputation. Liquidity risk may result from an

inability to sell a financial asset at, or close to, its

fair value.

Market Risk

Market Risk is the risk that changes in market

prices, such as foreign exchange rates and

interest rates, will affect the company’s income

or the value of its financial instruments. The

objective of Market Risk management is to

manage and control Market Risk exposures

within acceptable limits, while optimising the

return on risk.

Currency Risk

Currency Risk is the risk that the value

or cash flows of a financial instrument

will fluctuate due to changes in foreign

exchange rates. CCL is exposed to currency

risk on transactions that are denominated in

a currency other than its functional currency.

The main currencies giving rise to this risk

are the United States dollar (US$) and the

Canadian dollar (CDN$).

CCL ensures that the risk is kept at an

acceptable level by monitoring its risk

exposure and by maintaining funds in US$

as a hedge against adverse fluctuations in

exchange rates.

Interest Rate Risk

CCL minimises Interest Rate Risk by

investing mainly in fixed rate instruments and

contracting liabilities at fixed rates, where

possible. CCL’s Interest Rate Risk Arises

mainly from bank loans.

Other Risks, Environment – Quality and Safety

The main goal of CCL is to ensure that CCL

maintains a safe and healthy environment for our

employees, customers and other stakeholders

while maximizing shareholders’ returns.

Human Resource Overview

The year ending February 2021 was a

challenging, but rewarding, year for CCL and

employees alike. The COVID-19 pandemic

pushed us to be creative and flexible in

managing performance and staffing to maintain

operations and productivity amid the numerous

curfews and COVID-19 protocols.

Accomplishments for the year included:

1. Implementation of Performance linked

Compensation system

We implemented the new Performance

Management System (PMS) which is for

building the High-Performance Culture

necessary to achieve our vision of becoming

the #1 ice cream company in the Caribbean.

2. Implementation of a Shared Service Team

The Shared Service Team allows for the

optimisation of resource between CCL and

its parent company Scoops Unlimited in

the areas of Finance, IT, HR, and Marketing.

These resources provide services to both

companies and realise efficiencies through

economies of scale.

3. Recruitment of Key Skills and Talent in

Maintenance, Quality, & HR

4. Employee Rewards & Benefits

The excellent performance of the business,

despite the challenges of the pandemic,

allowed us to have employees share in

the success, as we paid our very first

performance-based bonus on the business

exceeding its main financial targets.

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Marketing Overview

With the onset of COVID-19 at the beginning

of the Financial Year, the country was literally

thrown into a tailspin, and for us to survive this

pandemic, we had to learn “how to fly the plane,

while building it”.

To this end we adopted a “survival mode”

and postponed our media and promotion

expenditure, until we could determine our

outlook. We did, however concentrate our efforts

on social media platforms, which maintained

our brand presence in the forefront of the

consumer’s mind for this period.

Based on the increase that we saw in at home

consumption due to COVID-19, in the fourth

quarter of the financial year, we launched our

new one (1) gallon tub of ice cream in multiple

flavours, targeted at the modern trade.

The upcoming financial year will see us

continuing to introduce new and innovative ways

of engaging both our customers and consumers.

Operations Overview

CCL continues to deliver profitability by

managing ingredient unit costs and maintaining

a reasonable pricing structure. Despite the

ongoing challenges from the COVID-19 pandemic

and the inclement weather conditions during

October and November, we exceeded planned

volume sales. While we over-delivered on bulk

ice cream, we had difficulty with supplies of

packaging for the smaller, but no less important,

retail ice cream market due to the pandemic. This

has carried into the current financial year.

Following the ongoing sanitisation guidelines,

we added hand-washing stations, temperature

checks and called in staff for additional hours

to cover for those who had to quarantine, all

to mitigate the effects of the pandemic, with

increased expenditures.

Our newest line of locally produced icicles faced

major stoppages due to equipment issues. The

inability of technical personnel to come to our

assistance during the pandemic kept equipment

out of service for distressingly longer periods.

With remote video links to our equipment

supplier technicians and help from some

Jamaican technicians who usually work overseas,

we eventually resolved our equipment issues.

We compensated with imported icicles until we

came back online.

The Ocho Rios depot opened in late September.

It both served the town and surrounding

communities, and moreover reduced travel time

for our major retailers in the area. Our Portmore

franchise arrangement also brought in additional

revenues and strengthened our brand presence.

Sadly, we lost two of our mid-level distributors

due to COVID-19, and we note our deep

appreciation for their many years of support,

even as we mourn their passing.

Our Jamaican resilience remains the key to our

company’s performance in this time.

Capital Expenditures

The pandemic forced a dramatic cut in our capital

projects, as the flow of technical resources and

materials and supplies were curtailed by the

pandemic. The postponed projects have been

moved into the new financial year.

We spent just under $25million on our new Ocho

Rios Depot, which began delivering to customers

in late September.

Preparatory work began on an alternative

energy project. This project is intended to

lower electricity costs. Permits and lease

arrangements are being put in place to allow

the implementation to take place in the coming

financial year.

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Outlook

The 2021/22 financial year promises to be even

more challenging than the prior year due to

the knock-on effects of the pandemic on the

global supply chain. Ingredient prices will be

adversely affected, and supply chains will likely

be interrupted. This will all put pressure on

our prices to consumers and may even cause

periodic short supplies. Our further concern is

pressure on the ongoing consumer purchasing

power.

Our team is working to minimise those possible

supply chain disruptions, while we remain

hopeful that consumer demand for our group of

products will match prior year levels.

With some work underway to improve our

retail packaging system and to “beef up” on

novelty output, we expect improved sales in the

smaller market segments of retail ice cream and

novelties.

We are looking forward to the completion of our

alternative energy project during this year and

will be starting the installation of our new ERP

system to strengthen our operation processes.

We are preparing for the installation of a new,

larger, and more efficient cold room and blast

Freezers in the succeeding financial year, as well

as other critical investments.

These will include environmental and operational

projects, to ensure that we are delivering quality

products within a world-class infrastructure.

The Board and Executive of Caribbean Cream

Limited wish to express our deepest gratitude

to our employees who continue to perform at a

high level while working through this pandemic.

We are also thankful for the in-market efforts of

our “fudgies”, our mid-level distributors, and our

smaller vendors, for remaining faithful to CCL,

as we build Jamaica’s capacity to provide ice

cream and novelties to our country and the wider

Caribbean.

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Corporate Social

Responsibility

Kremi Honoured by Early Childhood Commission

With business operators having been impeded in

carrying out social intervention programmes due

to the arrival of COVID-19 in 2020, Caribbean

Cream Limited – through its Kremi brand – kept

in contact with the Early Childhood Commission

(ECC) – its major corporate social responsibility

project. In addition, the significance of Kremi’s

contribution was recognised by the Commission

at a virtual Awards Ceremony on May 17, 2021.

At the event, the ECC acknowledged the

invaluable input of Kremi in promoting all 12

operating standards of the Commission, with

a contribution of $3 million in August, 2018.

The funds were to carry out improvements to a

total of 27 early childhood institution across the

island. So far 24 of the 27 have been upgraded

to meet the standards.

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The Board of Directors of Caribbean Cream

Limited is responsible for CCL’s system

of corporate governance and ultimately

accountable for it’s activities, strategy, risk

management and financial performance. The

Board has the authority, and is accountable

to shareholders, for ensuring that CCL is

appropriately managed and achieves the

strategic objectives it sets.

Board of Directors Composition

As of February 28, 2021, the Board of Directors

is comprised of 3 independent directors, 2

non-executive directors and 1 executive director,

who are qualified, objective, committed, and

possess diverse skill sets and the background

to effectively serve on the various committees of

the board. The names of the directors and their

qualifications are set out in the Directors’ Profile

section of this report. The definitions of these

directors are:

• An independent director is a

member of the board of directors who

does not engage in the day to day

management but may be involved in

policy-making and planning exercises.

They do not relate nor have any

pecuniary relationship with CCL, senior

management or affiliate companies. The

independent directors do not own more

than 3% of the voting shares of CCL.

• A non-executive director is a member

of the Board of Directors who does not

engage in the day to day management

but may be involved in policy-making

and planning exercises.

• An executive director is a member of

the Board of Directors who is heavily

involved in the day to day management

of CCL.

The Board and its Committees -

Board of Directors

Christopher Clarke - Chairman & Executive

Director

Mark McKenzie - Independent Director

Matthew Clarke - Non-executive Director

Michael Vaccianna - Independent Director

Carol Clarke Webster - Non-executive Director

Wayne Wray - Independent Director

Audit Committee

The Audit Committee is an operating committee

of CCL’s Board of Directors. It maintains direct

communication with the organisation’s financial

controller. Its role includes the oversight of

financial reporting, the monitoring of accounting

policies, the oversight of any external auditors,

regulatory compliance, and the discussion of risk

management policies with management.

The Audit Committee consists of 4 directors:

Wayne Wray - Chairman and

Independent Director

Christopher Clarke - Executive Director

Mark McKenzie - Independent Director

Michael Vaccianna - Independent Director

Compensation Committee

The Compensation Committee is a sub-

committee of CCL’s board of directors. It is

mainly responsible for setting the compensation

level of senior management. It also assists in

providing oversight for all matters relating to

compensation for all other staff and will make

recommendations as are necessary to ensure

that compensation is fair and equitable at all

levels of the organisation. In addition, the

Committee shall ensure that compensation

Corporate

Governance

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levels are competitive within the industry and

environment, in order to allow the company to

attract and retain qualified, experienced and

proficient persons.

Attendance At Meetings For The Year

The Members of the Committee and their attendance at the respective meetings for the 2021 financial

year is reflected in the Table below:

Annual General

Meeting

Board of Directors’

Meeting

Audit Committee

Meeting

Compensation

Committee

Meeting

Number of

meetings for the

year

1 4 4 1

Christopher

Clarke

1 4 4 1

Matthew Clarke * 4 - -

Carol Clarke

Webster

* 3 - 1

Mark McKenzie * 4 4 1

Michael Vaccianna * 4 4 -

Wayne Wray 1 4 4 1

*Absent due to COVID-19 restrictions

Board and Committee Meeting Fees

The fee for each Board meeting attended is

$50,000 and for each meeting attended of each

committee of which the director is a member.

Travel Expense Reimbursement

All Directors will be reimbursed for reasonable

travel expenses in connection with attendance

at meetings of CCL’s Board of Directors and its

Committees.

Annual General Meetings

General meetings with shareholders are held

annually and the meeting is structured to allow

shareholders to give their input and have their

queries answered.

Articles of Incorporation

The Company’s Articles of Incorporation was not

amended during the period under review.

The Corporate Governance Guidelines are

available on CCL’s website at

www.caribcream.com.

The Compensation Committee consists of 3

directors:

Mark McKenzie - Chairman & Independent

Director

Carol Clarke Webster - Non-executive Director

Wayne Wray - Independent Director

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Board of Directors

1

2

3

Mr. Christopher ClarkeExecutive Director

Mrs. Carol Clarke Webster

Dr. Matthew Clarke

Non-executive Director

Non-executive Director

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4

5

6

Mr. Mark McKenzie

Mr. Michael Vaccianna

Mr. Wayne Wray




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Senior Management

Christopher ClarkeChairman & Executive Director

Karen M. WilliamsFinancial Controller

Ryan PeraltoGeneral Manager

David RadleinChief Marketing Officer

Dean ClarkeChief Sales & Distribution Officer

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List of Top Ten (10) Largest Shareholders as at February 28, 2021

Shareholder Units

1. Scoops Un-Limited Limited 122,535,449

2. Matthew G. Clarke 60,055,425

3. Carol Webster/Christopher Clarke 58,521,764

4. Christopher A. Clarke 35,133,399

5. Resource In Motion Limited 32,479,583

6. Everton J. Smith 10,350,000

7. JI Limited 5,000,000

8. Mayberry Jamaican Equities Limited 3,543,286

9. Everton A. Smith 2,775,153

10. Sagicor Select Fund Limited - (‘Class C’ Shares) Manufacturing & Distribution 2,321,508

Shareholdings of Directors, Officers and Connected Parties as at February 28, 2021

Director Shareholdings Connected Parties Shareholdings

Carol Webster 58,521,764 Christopher Clarke

Scoops Un-Limited Limited 122,535,449

Matthew G. Clarke 60,055,425 Scoops Un-Limited Limited 122,535,449

Christopher A. Clarke 30,133,399

Christopher A. Clarke 5,000,000 Kamoy S. Clarke (joint holder)

Scoops Un-Limited Limited 122,535,449

Mark McKenzie 1,487,558

Wayne Wray 200,000

1,043,249 Christine Randle

6,835 Craig A. Singh

Michael Vaccianna 0

Denise Douglas 2,895 Ryan McCalla

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Shareholdings of Senior Management and Connected Parties as at February 28, 2021

Senior Manager Shareholdings Connected Parties Shareholdings

David Radlein 100,000 Catherine Radlein

Karen Williams 80,855 Vyris Williams

Dean Alvery Clarke 200,100

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34

KPMG


P.O. Box 436

6 Duke Street

Kingston

Jamaica, W.I.

+1 (876) 922-6640

[email protected]

INDEPENDENT AUDITORS’ REPORT

To the Members of

CARIBBEAN CREAM LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Caribbean Cream Limited (“the company”), set out

on pages 41 to 76, which comprise the statement of financial position as at February 28, 2021,

the statements of profit or loss and other comprehensive income, changes in equity and cash

flows for the year then ended, and notes, comprising significant accounting policies and other

explanatory information.

In our opinion, the accompanying financial statements give a true and fair view of the financial

position of the company as at February 28, 2021, and of its financial performance and its cash

flows for the year then ended in accordance with International Financial Reporting Standards

(IFRS) and the Jamaican Companies Act.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our

responsibilities under those standards are further described in the Auditors’ Responsibilities

for the Audit of the Financial Statements section of our report. We are independent of

the company in accordance with the International Ethics Standards Board for Accountants

International Code of Ethics for Professional Accountants including International Independence

Standards (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance

with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

KPMG, a Jamaican partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

R. Tarun HandeCynthia L. LawrenceRajan TrehanNorman O. RainfordNigel R. Chambers

Nyssa A. JohnsonW. Gihan C. de MelWilbert A. SpenceRochelle N. StephensonSandra A. Edwards

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35

INDEPENDENT AUDITORS’ REPORT (CONTINUED)

To the Members of


Report on the Audit of the Financial Statements (continued)

Key Audit Matter

Key audit matter is a matter that, in our professional judgment, was of most significance in our

audit of the financial statements of the current period. This matter was addressed in the context

of our audit of the financial statements as a whole, and in forming our opinion thereon, and we

do not provide a separate opinion on this matter.

Carrying amount of trade receivables

Key Audit Matter How the matter was addressed in our audit

The carrying value of the company’s

trade receivables may not be

recoverable due to changes in the

business and economic environment

in which specific customers operate.

There is judgment involved in

determining the levels of allowance for

impairment on these balances, because

of the uncertainty involved in estimating

the timing and amount of future

collections.

Our audit procedures in response to this

matter, included:

• Testing the company’s recording

and ageing of trade receivables.

• Using the appropriate KPMG

specialist, we reviewed the

expected credit loss (ECL) model

calculations and agreed the data

inputs.

• Comparing the definition of

default for the ECL measurement,

as outlined in the accounting

policy, against the definition that

management uses for credit risk

arrangements.

• Evaluating the appropriateness of

economic parameters including the

use of forward looking information.

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To the Members of



Key Audit Matter (continued)

Carrying amount of trade receivables (continued)

Key Audit Matter How the matter was addressed in our audit

Our audit procedures in response to this

matter, included (continued):

• Testing the accuracy of the ECL

calculation.

• Evaluating the adequacy of

the allowance for impairment

recognized in respect of the

company’s trade receivables

by assessing management’s

assumptions used including

determining compliance with the

requirements of IFRS 9, Financial

Instruments.

• Considering the adequacy of the

disclosures about the degree of

estimation involved in arriving at the

allowance for impairment.

Other information

Management is responsible for the other information. The other information comprises the

information included in the annual report but does not include the financial statements and our

auditors’ report thereon. The annual report is expected to be made available to us after the

date of this auditors’ report.

Our opinion on the financial statements does not cover the other information and we will not

express any form of assurance conclusion thereon.

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37


To the Members of




Other information (continued)

In connection with our audit of the financial statements, our responsibility is to read the other

information identified above when it becomes available and, in doing so, consider whether

the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein,

we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Financial

Statements

Management is responsible for the preparation of financial statements that give a true and fair

view in accordance with IFRS and the Jamaican Companies Act, and for such internal control

as management determines is necessary to enable the preparation of financial statements that

are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the company’s

ability to continue as a going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless management either intends to

liquidate the company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company’s financial

reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as

a whole are free from material misstatement, whether due to fraud or error, and to issue an

auditors’ report that includes our opinion.

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38


To the Members of




Auditors’ Responsibilities for the Audit of the Financial Statements (continued)

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is included

in the Appendix to this auditors’ report. This description, which is located at pages 39 to 40,

forms part of our auditors’ report.

Report on additional matters as required by the Jamaican Companies Act

We have obtained all the information and explanations which, to the best of our knowledge and

belief, were necessary for the purposes of our audit.

In our opinion, proper accounting records have been maintained, so far as appears from our

examination of those records, and the financial statements, which are in agreement therewith,

give the information required by the Jamaican Companies Act in the manner required.

The engagement partner on the audit resulting in this independent auditors’ report is Wilbert

Spence.


Kingston, Jamaica

June 14, 2021

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39


To the Members of


Appendix to the Independent Auditors’ report

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error, as

fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the company’s ability to continue as a going

concern. If we conclude that a material uncertainty exists, we are required to draw attention in our

auditors’ report to the related disclosures in the financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up

to the date of our auditors’ report. However, future events or conditions may cause the company to

cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events

in a manner that achieves fair presentation.

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To the Members of


Appendix to the Independent Auditors’ report (continued)

We communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and significant audit findings, including any significant

deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied

with relevant ethical requirements regarding independence, and communicate with them all

relationships and other matters that may reasonably be thought to bear on our independence,

and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those

matters that were of most significance in the audit of the financial statements of the current

period and are therefore the key audit matters. We describe these matters in our auditors’

report unless law or regulation precludes public disclosure about the matter or when, in

extremely rare circumstances, we determine that a matter should not be communicated in

our report because the adverse consequences of doing so would reasonably be expected to

outweigh the public interest benefits of such communication.

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41

The financial statements on pages 41 to 76 were approved for issue by the Board of Directors on June 14, 2021

and signed on its behalf by:

_________________________________________________ChairmanChristopher Clarke

_________________________________________________Director

Carol Clarke Webster

The accompanying notes form an integral part of the financial statements.



February 28, 2021

(Expressed in Jamaica dollar unless otherwise stated)

Notes 2021 2020

NON-CURRENT ASSETS

Property, plant and equipment 4 825,483,694 773,143,905

Right-of-use assets 5 (a) 93,044,425 95,435,877

Total non-current assets 918,528,119 868,579,782

CURRENT ASSETS

Cash and cash equivalents 6 217,283,548 129,196,815

Trade and other receivables 7 93,514,369 58,211,081

Tax recoverable - 779,621

Inventories 8 162,352,192 117,774,685

Total current assets 473,150,109 305,962,202

CURRENT LIABILITIES

Trade and other payables 9 214,491,486 185,346,512

Taxation payable 10,734,482 -

Current portion of lease liabilities 5 (b) 17,456,686 19,539,121

Current portion of long-term loans 10 6,977,778 27,441,951

Total current liabilities 249,660,432 232,327,584Net current assets 223,489,677 73,634,618

Total assets less current liabilities 1,142,017,796 942,214,400

NON-CURRENT LIABILITIES

Long-term loans 10 206,927,474 104,972,207

Lease liabilities 5 (b) 86,580,789 79,622,207

Deferred tax liability 11 14,576,941 13,389,525

Total non-current liabilities 308,085,204 197,983,939

EQUITY

Share capital 12 111,411,290 111,411,290

Accumulated profits 722,521,302 632,819,171

Total equity 833,932,592 744,230,461

Total non-current liabilities and equity 1,142,017,796 942,214,400

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Statement of Profit or Loss and Other Comprehensive Income

Year ended February 28, 2021


Notes 2021 2020

Gross operating revenue 13 1,870,188,069 1,706,358,991

Cost of operating revenue 14 (a) (1,245,049,430) (1,160,747,229)

Gross profit 625,138,639 545,611,762

Other income - 1,994,192

625,138,639 547,605,954

Administrative, selling and distribution expenses:

Administrative 14 (b) (427,856,374) (395,323,017)

Selling and distribution 14 (c) (60,656,587) (68,301,238)

(488,512,961) (463,624,255)

Impairment recovered/(loss) on trade receivables 7 (i) 1,804,151 (2,673,129)

Operating profit before finance costs and taxation 138,429,829 81,308,570

Finance income - interest 1,333,200 1,133,753

Finance costs 15 (21,262,694) (20,270,767)

Profit before taxation 118,500,335 62,171,556

Taxation 16 (17,819,728) (7,602,157)

Profit, being total comprehensive income for the year 100,680,607 54,569,399

Earnings per stock unit 17 0.27 0.14

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Statement of Changes in Equity

Year ended February 28, 2021


Share Capital

Accumulated

profits Total

(note 12)

Balances at March 1, 2019 111,411,290 596,421,042 707,832,332

Total comprehensive income:

Profit, being total comprehensive income

for the year 54,569,399 54,569,399

Transaction with owners: -

Dividends (note 20) - (18,171,270) (18,171,270)

Balances as at February 29, 2020 111,411,290 632,819,171 744,230,461

Total comprehensive income:

Profit, being total comprehensive income for the year - 100,680,607 100,680,607

Transaction with owners:

Dividends (note 20) - (10,978,476) ( 10,978,476)

Balances as at February 28, 2021 111,411,290 722,521,302 833,932,592


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Statement of Cash Flows

Year Ended February 28, 2021


Notes 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the year 100,680,607 54,569,399

Adjustments for:

Depreciation 4 95,027,056 93,736,000

Depreciation – right-of-use assets 5 (a) 21,645,433 21,433,403

Lease interest expense 5 (c) 9,481,508 6,520,487

Interest expense 15 11,951,987 12,712,752

Gain on disposal of property, plant and equipment - (145,011)

Interest income (1,333,200) (1,133,753)

Taxation 16 17,819,728 7,602,157

Operating profit before changes in working capital 255,273,119 195,295,434

Trade and other receivables (35,284,591) 8,017,291

Inventories (44,577,507) 22,669,319

Trade and other payables 29,144,974 27,445,743

Taxation paid (5,118,209) (8,963,022)

Interest paid (11,951,987) (12,712,752)

Interest received 1,314,503 1,477,398

Net cash provided by operating activities 188,800,302 233,229,411

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment 4 (147,366,845) (161,538,334)

Proceeds from sale of property, plant and equipment - 257,511

Net cash used by investing activities (147,366,845) (161,280,823)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank loans 258,905,252 -

Repayment of bank loans (177,414,158) (30,346,958)

Payment of lease liabilities, net 5 (d) ( 23,859,342) (24,228,439

Dividends 20 (10,978,476) (18,171,270)

Net cash provided/(used) by financing activities 46,653,276 ( 72,746,667)

Net increase/(decrease) in cash and cash equivalents 88,086,733 (798,079)

Cash and cash equivalents at beginning of the year 129,196,815 129,994,894

Cash and cash equivalents at end of the year 217,283,548 129,196,815


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Notes to the Financial Statements

February 28, 2021


1. Identification

Caribbean Cream Limited (the company) is incorporated and domiciled in Jamaica and is listed on the Junior

Market of the Jamaica Stock Exchange (JSE). The company’s registered office is located at 3 South Road,

Kingston 10, Jamaica.

At the reporting date, Scoops Unlimited Limited, a company incorporated and domiciled in Jamaica, and

its directors controlled the company by virtue of their direct holding of 78% of the issued shares of the

company.

The principal activities of the company are the manufacture and sale of ice cream and frozen novelties,

under the ‘Kremi’ brand, and the importation and distribution of certain types of frozen novelties.

2. Basis of preparation

(a) Statement of compliance:

The financial statements as at and for the year ended February 28, 2021 (the reporting date) are

prepared in accordance with International Financial Reporting Standards (IFRS) and comply with the

provisions of the Jamaican Companies Act.

New and amended standards that became effective during the year

Certain new and amended standards that were issued came into effect during the current financial

year. The adoption of those new standards and amendments did not have any impact on the company’s

financial statements.

New and amended standards issued that are not yet effective

At the date of approval of the financial statements, there were certain new and amended standards

which were in issue but were not yet effective and which the company has not early adopted. Those

which management considered may be relevant to the company are as follows:

• Amendments to IFRS 16 Leases is effective for annual reporting periods beginning on or after June 1,

2020, with early application permitted. It provides guidance for COVID-19 related rent concessions.

The amendments introduce an optional practical expedient that simplifies how a lessee accounts

for rent concessions that are a direct consequence of COVID-19. A lessee that applies the practical

expedient is not required to assess whether eligible rent concessions are lease modifications, and

accounts for them in accordance with other applicable guidance. The resulting accounting will

depend on the details of the rent concession. For example, if the concession is in the form of a one-

off reduction in rent, it will be accounted for as a variable lease payment and be recognised in profit

or loss.

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Notes to the Financial Statements (Continued)

February 28, 2021


2. Basis of preparation (continued)

(a) Statement of compliance (continued):

New and amended standards issued that are not yet effective (continued)

• Amendments to IFRS 16 Leases is effective for annual reporting periods beginning on or after June

1, 2020, with early application permitted. It provides guidance for COVID-19 related rent concessions

(continued).

The practical expedient will only apply if:

- the revised consideration is substantially the same or less than the original consideration;

- the reduction in lease payments relates to payments due on or before 30 June 2022; and

- no other substantive changes have been made to the terms of the lease.

Lessees applying the practical expedient are required to disclose:

- that fact, if they have applied the practical expedient to all eligible rent concessions and, if not,

the nature of the contracts to which they have applied the practical expedient; and

- the amount recognised in profit or loss for the reporting period arising from application of the

practical expedient.

No practical expedient is provided for lessors. Lessors are required to continue to assess if the rent

concessions are lease modifications and account for them accordingly.

• Amendments to IAS 37 Provision, Contingent Liabilities and Contingent Assets is effective for annual

reporting periods beginning on or after January 1, 2022 and clarifies those costs that comprise the

costs of fulfilling the contract.

The amendments clarify that the ‘costs of fulfilling a contract’ comprise both the incremental costs

– e.g. direct labour and materials; and an allocation of other direct costs – e.g. an allocation of the

depreciation charge for an item of property, plant and equipment used in fulfilling the contract.

This clarification will require entities that apply the ‘incremental cost’ approach to recognise bigger

and potentially more provisions. At the date of initial application, the cumulative effect of applying

the amendments is recognised as an opening balance adjustment to retained earnings or other

component of equity, as appropriate. The comparatives are not restated.

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February 28, 2021



(a) Statement of compliance (continued):

New and amended standards issued that are not yet effective (continued)

• Annual Improvements to IFRS Standards 2018-2020 cycle contain amendments to IFRS 1 First-

time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS

16 Leases, IAS 41 Agriculture, and are effective for annual reporting periods beginning on or after

January 1, 2022.

(i) IFRS 9 Financial Instruments amendment clarifies that – for the purpose of performing the 10

per cent test’ for derecognition of financial liabilities – in determining those fees paid net of fees

received, a borrower includes only fees paid or received between the borrower and the lender,

including fees paid or received by either the borrower or lender on the other’s behalf.

(ii) IFRS 16 Leases amendment removes the illustration of payments from the lessor relating to

leasehold improvements.

(iii) The amendments to IAS 41 Agriculture removes the requirement to exclude cash flows for taxation

when measuring fair value, thereby aligning the fair value measurement requirements in IAS 41

with those in IFRS 13 Fair Value Measurement.

• Amendments to IAS 1 Presentation of Financial Statements, will apply retrospectively for annual

reporting periods beginning on or after 1 January 2023. The amendments promote consistency in

application and clarify the requirements on determining if a liability is current or non-current.

Under existing IAS 1 requirements, companies classify a liability as current when they do not have

an unconditional right to defer settlement of the liability for at least twelve months after the end

of the reporting period. As part of its amendments, the requirement for a right to be unconditional

has been removed and instead, now requires that a right to defer settlement must have substance

and exist at the end of the reporting period. A company classifies a liability as non-current if it has

a right to defer settlement for at least twelve months after the reporting period. It has now been

clarified that a right to defer exists only if the company complies with conditions specified in the

loan agreement at the end of the reporting period, even if the lender does not test compliance until

a later date.

With the amendments, convertible instruments may become current. In light of this, the

amendments clarify how a company classifies a liability that includes a counterparty conversion

option, which could be recognised as either equity or a liability separately from the liability

component under IAS 32. Generally, if a liability has any conversion options that involve a transfer

of the company’s own equity instruments, these would affect its classification as current or non-

current. It has now been clarified that a company can ignore only those conversion options that are

recognised as equity when classifying liabilities as current or non-current.

The company is assessing the impact that these amendments will have on its financial statements when

they become effective.

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February 28, 2021



(b) Basis of measurement and functional currency:

The financial statements are prepared on the historical cost basis and are presented in Jamaica dollars,

which is the functional currency of the company.

(c) Use of estimates and judgements:

The preparation of the financial statements in conformity with IFRS requires management to make

judgments, estimates and assumptions that affect the application of policies and reported amounts of,

and disclosures relating to, assets, liabilities, contingent assets and contingent liabilities at the reporting

date and the income and expenses for the year then ended. Actual amounts could differ from those

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised and future periods if the revision

affects both current and future periods.

Judgments made by management in the application of IFRS that have a significant effect on the financial

statements and estimates with a significant risk of material adjustment in the next financial year are

discussed below:

(i) Judgements:

For the purpose of these financial statements, judgement refers to the informed identification and

analysis of reasonable alternatives, considering all relevant facts and circumstances, and the well-

reasoned, objective and unbiased choice of the alternative that is most consistent with the agreed

principles set out in IFRS. The key relevant judgements are as follows:

(1) Classification of financial assets:

The assessment of the business model within which the assets are held and assessment

of whether the contractual terms of the financial asset are solely payments of principal and

interest (SPPI) on the principal amount outstanding requires management to make certain

judgements on its business operations.

(2) Impairment of financial assets:

Establishing the criteria for determining whether credit risk on the financial asset has increased

significantly since initial recognition, determining methodology for incorporating forward-

looking information into measurement of expected credit loss (ECL) and selection and approval

of models used to measure ECL requires significant judgement.

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February 28, 2021



(c) Use of estimates and judgements (continued):

(ii) Key assumptions concerning the future and other sources of estimation uncertainty:

Allowance for impairment losses:

(d) In determining amounts recorded for impairment of financial assets in the financial statements,

management makes assumptions in determining the inputs to be used in the ECL measurement

model, including incorporation of forward-looking information. Management also estimate the likely

amount of cash flows recoverable on the financial assets in determining loss given default. The use of

assumptions make uncertainty inherent in such estimates.

Net realisable value of inventories:

Estimates of net realisable value are based on the most reliable evidence available at the time the

estimates are made, of the amount the inventories are expected to realise. These estimates take

into consideration fluctuations of price or cost directly relating to events occurring after the end of

the year to the extent that such events confirm conditions existing at the end of the year.

Estimates of net realisable value also take into consideration the purpose for which the inventory is

held.

Residual value and useful life of property, plant and equipment:

The residual value and the useful life of each asset are reviewed at least at each financial year-

end, and, if expectations differ from previous estimates, the change is accounted for as a change in

accounting estimate. The useful life of an asset is defined in terms of the asset’s expected utility to

the company.

3. Significant accounting policies

(a) Segment reporting:

A segment is a distinguishable component of the company that is engaged either in providing products

(business segment), or in providing products within a particular economic environment (geographical

segment), which is subject to risks and rewards that are different from those of other segments.

The company’s activities are limited to the manufacture and sale of ice cream products and frozen

novelties to Jamaican consumers, operating in a single segment, therefore no additional segment

information is provided.

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February 28, 2021


3. Significant accounting policies (continued)

(b) Property, plant and equipment:

(i) Items of property, plant and equipment are measured at cost, less accumulated depreciation and

impairment losses. Costs include expenditures that are directly attributable to the acquisition of the

assets. The cost of replacing part of an item of property, plant and equipment is recognised in the

carrying amount of the item if it is probable that the future economic benefits embodied within the

part will flow to the company and its cost can be reliably measured. The cost of day-to-day servicing

of property, plant and equipment is recognised in profit or loss as incurred.

(ii) Depreciation:

Depreciation is recognised in profit or loss on the straight-line basis at annual rates estimated to

write down the assets to their residual values over their expected useful lives. No depreciation is

charged on construction in progress. The depreciation rates are as follows:

Buildings

Leasehold improvements

Motor vehicles

Machinery and equipment

Computer equipment

Security systems

Right of use assets

5%

lease period

12.5%

10%

25%

10%

10%-20%

Depreciation methods, useful lives and residual values are reassessed annually.

(c) Cash and cash equivalents:

Cash and cash equivalents comprise cash, bank balances and fixed deposits with maturity of three

months or less from the date of placement and are at measured cost. For the purpose of the statement

of cash flows, bank overdraft, if any, that is repayable on demand and form an integral part of cash

management activities, is included as part of cash and cash equivalents.

(d) Trade and other receivables:

Trade and other receivables are measured at amortised cost less impairment losses [see note 3(m)].

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(e) Inventories:

Inventories are measured at the lower of cost, determined principally on a first-in-first-out (FIFO) basis,

and net realisable value. Net realisable value is the estimated selling price in the ordinary course of

business, less the estimated selling costs.

(f) Trade and other payables:

Trade and other payables are measured at amortised cost.

(g) Borrowings:

Borrowings are recognised initially at fair value, net of transaction costs incurred. Subsequent to initial

recognition, interest-bearing borrowings are measured at amortised cost, with any difference between

proceeds (net of transaction costs) and redemption value being recognised in profit or loss over the

period of the borrowings using the effective interest rate method.

Borrowing costs that are directly attributable to the acquisition, construction or production of a

qualifying asset are capitalised as property, plant and equipment.

(h) Share capital:

Ordinary shares are classified as equity where there is no obligation to transfer cash or other assets.

Transaction costs directly attributable to the issue of shares are shown in equity as a deduction from the

proceeds of the share issue.

(i) Revenue recognition:

Performance obligations and revenue recognition policies:

Revenue is measured based on the consideration specified in a contract with a customer. The company

recognises revenue when it transfers control over a good or service to a customer.

The nature and timing of the satisfaction of performance obligations in contracts with customers,

including significant payment terms, and the related revenue recognition policies are as follows:

Type of service Nature and timing of satisfaction

of performance obligations,

including significant payment

terms.

Revenue recognition under

IFRS 15.

Sale of Ice cream products Customers obtain control of

goods when the goods are

delivered to and accepted by

them. Invoices are generated

and the revenue is recognized at

that point in time.

Revenue is recognised when

the goods are delivered and

have been accepted by the

customers, which is at a point

in time.

Invoices are usually payable

within 30 days.

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(j) Taxation:

Income tax on the profit or loss for the year comprises current and deferred tax. Taxation is recognised

in profit or loss, except to the extent that it relates to items recognised directly to equity, in which case it

is recognised in other comprehensive income.

Current income tax is the expected tax payable on the taxable income for the year, using tax rates

enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided for temporary differences between the carrying amounts of assets and

liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount

of deferred tax provided is based on the expected manner of realisation or settlement of the carrying

amount of assets and liabilities, using tax rates enacted at the reporting date.

A deferred tax liability is recognised for all taxable temporary differences except to the extent that the

company is able to control the timing of the reversal of the temporary difference and it is probable that

the temporary difference will not reverse in the foreseeable future.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be

available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is

no longer probable that the related tax benefit will be realised.

(k) Related parties:

A related party is a person or entity that is related to the entity that is preparing its financial statements

(referred to in IAS 24 Related Party Disclosures as the “reporting entity” in this case the company).

(a) A person or a close member of that person’s family is related to the company if that person:

(i) has control or joint control over the company;

(ii) has significant influence over the company; or

(iii) is a member of the key management personnel of the company or of a parent of the company.

(b) An entity is related to the company if any of the following conditions applies:

(i) The entity and the company are members of the same group (which means that each parent,

subsidiary and fellow subsidiary is related to the others).

(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a

member of a group of which the other entity is a member).

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(k) Related parties (continued):

(b) An entity is related to the company if any of the following conditions applies (continued):

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

(v) The entity is a post-employment benefit plan for the benefit of employees of either the company

or an entity related to the company.

(vi) The entity is controlled, or jointly controlled by a person identified in (a).

(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key

management personnel of the entity (or of a parent of the entity).

(viii) The entity, or any member of a group of which it is a part, provides key management personnel

services to the company or to the parent of the company.

(c) Related party transaction is a transfer of resources, services or obligations between related

parties, regardless of whether a price is charged.

(l) Foreign currencies:

Foreign currency balances at the reporting date are translated at the exchange rates ruling at that date.

Transactions in foreign currencies are converted at the exchange rates ruling at the dates of those

transactions. Gains and losses arising from fluctuations in exchange rates are recognised in profit or

loss.

For the purpose of the statement of cash flows, all foreign currency gains and losses recognised in

profit or loss are treated as cash items and included in cash flows from operating or financing activities

along with movement in the relevant balances.

(m) Impairment:

Financial assets

The company recognises loss allowances for expected credit losses (ECLs) on:

- financial assets measured at amortised cost; and

- contract assets

The company measures loss allowances at an amount equal to lifetime ECLs.

Loss allowances for trade receivables and contract assets are always measured at an amount equal to

lifetime ECLs.

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(m) Impairment (continued):

Financial assets (continued)

When determining whether the credit risk of a financial asset has increased significantly since initial

recognition and when estimating ECLs, the company considers reasonable and supportable information

relevant and available without undue cost or effort. This includes both quantitative and qualitative

information and analysis, based on the company’s historical experience and informed credit assessment

and including forward looking information.

The company assumes that the credit risk on financial assets has increased significantly if it is more than

90 days past due.

The company recognises loss allowances for ECLs and considers a financial asset to be in default when:

- the borrower is unlikely to pay its credit obligations to the company in full, without recourse by -the

company to action such as realising security if any is held;

- or the financial asset is more than 90 days past due.

Life-time ECLs are the ECLs that result from all possible default events over the expected life of the

financial instrument.

The maximum period considered when estimating ECLs is the maximum contractual period over which

the company is exposed to credit risk.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present

value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance

with the contract and the cash flows that the company expects to receive).

ECLs are discounted at the effective interest rate of the financial asset.

Credit-impaired financial assets

At each reporting date, the company assesses whether financial assets carried at amortised costs are

credit impaired. A financial asset is ‘credit impaired’ when one or more events that have a detrimental

impact on the estimated future cash flows of the financial asset have occurred.

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Credit-impaired financial assets (continued)

Evidence that a financial asset is credit-impaired includes the following observable data:

- significant financial difficulty of the borrower or issuer;

- a breach of contract such as a default or past due event;

- it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or

- the disappearance of an active market for a security because of financial difficulties.

Presentation of allowance for ECL in the statement of financial position

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying

amount of the assets.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) when there is no

reasonable expectation of recovering a financial asset in its entirety or a portion thereof. This is the case

when the company determines that the debtor does not have assets or sources of income that could

generate sufficient cash flows to repay the amounts subject to the write-off. This assessment is carried

out at the individual asset level.

Recoveries of amounts previously written off are included in ‘impairment losses on financial instruments’

in the statement of profit or loss.

Financial assets that are written off could still be subject to enforcement activities in order to comply

with the company’s procedures for recovery of amounts due.

Non- financial assets

The carrying amount of the company’s non-financial assets (other than inventories and deferred tax

asset) are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is

recognised whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its

recoverable amount. Impairment losses are recognised in profit or loss.

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Non- financial assets (continued)

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs

to sell. In assessing value in use, the estimated future cash flows are discounted to their present value

using a pre-tax discount rate that reflects current market assessments of the time value of money and

the risks specific to the asset. For an asset that does not generate largely independent cash inflows,

the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An impairment loss is reversed if there has been a change in the estimates used to determine the

recoverable amount. An impairment loss is reversed only to the extent that the assets’ carrying amount

does not exceed the carrying amount that would have been determined, if no impairment loss had been

recognised.

(n) Financial instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial

liability or equity instrument of another entity. In these financial statements, financial assets comprise

cash and cash equivalents and trade and other receivables. Financial liabilities comprise trade and

other payables and long-term loans.

(i) Recognition and initial measurement

Trade receivables are initially recognised when they are originated. All other financial assets and

financial liabilities are initially recognised when the company becomes a party to the contractual

provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or

financial liability is initially measured at fair value plus, for an item not at fair value through profit

or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade

receivable without a significant financing component is initially measured at the transaction price.

(ii) Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at: amortised cost; fair value

through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or fair

value through profit or loss (FVTPL).

Financial assets are not reclassified subsequent to their initial recognition unless the company

changes its business model for managing financial assets, in which case all affected financial assets

are reclassified on the first day of the first reporting period following the change in the business

model.

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(n) Financial instruments (continued):

(ii) Classification and subsequent measurement (continued)

Financial assets (continued)

A financial asset is measured at amortised cost if it meets both of the following conditions and is not

designated as at FVTPL:

- it is held within a business model whose objective is to hold assets to collect contractual cash

flows; and

- its contractual terms give rise on specified dates to cash flows that are solely payments of

principal and interest on the principal amount outstanding (SPPI).

Amortised cost represents the net present value (“NPV”) of the consideration receivable or payable

as of the transaction date. This classification of financial assets comprises the following captions:

• Cash and cash equivalents

• Trade and other receivables

Due to their short-term nature, the company initially recognises these assets at the original invoiced

or transaction amount less expected credit losses.

All financial assets not classified as measured at amortised cost or FVOCI as described above are

measured at FVTPL. On initial recognition, the company may irrevocably designate a financial asset

that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if

doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets – Business model assessment

The company makes an assessment of the objective of the business model in which a financial

asset is held at a portfolio level because this best reflects the way the business is managed and

information is provided to management.

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(ii) Classification and subsequent measurement (continued)

Financial assets – Assessment whether contractual cash flows are solely payments of principal

and interest

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset

on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the

credit risk associated with the principal amount outstanding during a particular period of time and

for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit

margin.

The company’s objective is to hold financial assets to collect contractual cash flows. In assessing

whether the contractual cash flows are solely payments of principal and interest, the company

considers the contractual terms of the instrument. This includes assessing whether the financial

asset contains a contractual term that could change the timing or amount of contractual cash flows

such that it would not meet this condition.

Financial liabilities

All financial liabilities are recognised initially at fair value and in the case of borrowings, plus directly

attributable transaction costs. The company’s financial liabilities, which include trade and other

payables and long-term loans are recognized initially at fair value.

Financial assets and liabilities – Subsequent measurement and gains and losses

Financial assets at amortised cost are subsequently measured at amortised cost using the effective

interest method. The amortised cost is reduced by impairment losses. Interest income, foreign

exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on

derecognition is recognised in profit or loss.

The subsequent measurement of financial liabilities depends on their classification as described

in the particular recognition methods disclosed in the individual policy statements associated with

each item.

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(iii) Derecognition

Financial assets

The company derecognises a financial asset when the contractual rights to the cash flows from the

financial asset expire or it transfers the rights to receive the contractual cash flows in a transaction

in which substantially all of the risks and rewards of ownership of the financial asset are transferred

or in which the company neither transfers nor retains substantially all of the risks and rewards of

ownership and it does not retain control of the financial asset.

The company enters into transactions whereby it transfers assets recognised on its statement of

financial position, but retains either all or substantially all of the risks and rewards of the transferred

assets or a portion of them. In such cases, the transferred assets are not derecognised.

Financial liabilities

The company derecognises a financial liability when its contractual obligations are discharged or

cancelled, or expired.

(iv) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of

financial position when, and only when, the company currently has a legally enforceable right to set

off the amounts and it intends either to settle them on a net basis or to realise the asset and settle

the liability simultaneously.

(o) Leases:

At inception of a contract, the company assesses whether a contract is, or contains, a lease. A contract

is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a

period of time in exchange for consideration. To assess whether a contract conveys the right to control

the use of an identified asset, the company uses the definition of a lease in IFRS16.

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(o) Leases (continued):

As a lessee

At commencement or modification of a contract that contains a lease component, the company

allocates the consideration in the contract to each lease component on the basis of their relative stand-

alone prices.

The company recognises a right-of-use asset and a lease liability at the commencement date. The

right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability

adjusted for any lease payments made at or before the commencement date, plus any initial direct costs

incurred and an estimate of costs to dismantle and remove underlying asset or to restore the underlying

asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the

commencement date to the earlier of the end of the useful life of the right-of-use asset or the end

of the lease term. The estimated useful lives of the right-of-use assets are determined on the same

basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by

impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at

the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be

readily determined, the company’s incremental borrowing rate.

The company determines its incremental borrowing rate by obtaining interest rates from various

external financing sources and makes certain adjustments to reflect the terms of the lease and type of

the asset leased.

Short-term leases and leases of low-value assets

For short-term leases and leases of low-value assets, the company has elected not to recognise right-

of-use assets and lease liabilities for short term leases of assets that have a lease term of 12 months or

less and lease of low-value assets. The company recognises the lease payments associated with these

leases as an expense on a straight-line basis over the lease term.

(p) Fair value measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date. Market price is used to determine

fair value where an active market exists as it is the best evidence of the fair value of a financial

instrument. The company has no financial instrument that is carried at fair value and where carrying

value of financial instruments is a reasonable approximation of carrying value, no fair value computation

is done.

The carrying value reflected in the financial statements for cash and cash equivalent, trade and other

receivables, and trade and other payables are assumed to approximate fair value due to their relatively

short-term nature.

The fair value of long-term loans is assumed to approximate carrying value as the loans bear interest at

market rates and all other conditions are at market terms.

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5. Leases

The company leases various properties to facilitate the sale of its products. The leases include an option to

renew after the lease periods have ended. It is expected that in the normal course of business leases that

expire generally will be renewed or replaced by similar leases. Lease payments are renegotiated after the

end of the contract period to reflect market rentals.

Information about leases for which the company as a lessee is presented below.

(a) Right-of-use assets - Property 2021 2020

Balance at beginning of year 95,435,877 77,928,358Additions - 38,940,922Adjustment due to exercise of lease extensions 19,253,981 -Depreciation charge for the year (21,645,433) (21,433,403)Balance as at year end 93,044,425 95,435,877

Lease liabilities

Maturities analysis- contractual undiscounted cash flows:2021 2020

Less than one year 24,488,228 27,011,214Two to five years 81,878,103 77,740,306Over five years 21,364,624 14,723,448

Total undiscounted lease liabilities at February 28, 2021 127,730,956 119,474,968Less: Discount (23,693,480) (20,313,640)

104,037,475 99,161,328

Lease liabilities included in the statement of financial position:

2021 2020

Current 17,456,686 19,539,121Non-current 86,580,789 79,622,207

104,037,475 99,161,328

(b) Amount recognised in profit or loss

Interest on lease liabilities 9,481,508 6,520,487Depreciation of right -of-use assets 21,645,433 21,433,403

(c) Amount recognised in the statement of cash flows

Total cash outflow for leases (23,859,342) (24,228,439)

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6. Cash and cash equivalents

2021 2020

Bank balances 163,988,173 59,988,236

Cash in hand 320,902 105,882

164,308,805 60,094,118

Fixed deposits 52,974,473 69,102,697

217,283,548 129,196,815

7. Trade and other receivables

2021 2020

Trade receivables 73,559,380 46,000,580

Less provision for impairment losses (i) (1,637,976) (3,442,127)

71,921,404 42,558,453

Prepayments and deposits 18,840,560 11,830,728

Other receivables 2,752,405 3,821,900

93,514,369 58,211,081

Included in trade receivables is $33,925,593 (2020: $12,021,049) due from a related party in the ordinary

course of business (see note 18).

Under the ECL model, the company uses accounts receivable based on days past due and determines an

average rate of ECL, considering actual credit loss experience over the last 12 months and analysis of future

delinquency, that is applied to the balance of the accounts receivable. A weighted average ECL rate is used

as at February 28, 2021 to apply against the accounts receivable balance [note 21(a)(i)].

(i) Movement in impairment losses for trade receivables is as follows:

2021 2020

Balance as at beginning of year 3,442,127 768,998

Reversal of impairment ( 1,804,151) -

Impairment loss recognised - 2,673,129

Balance as at end of year 1,637,976 3,442,127

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8. Inventories

2021 2020

Raw materials 87,659,699 71,924,548

Finished goods 25,657,634 44,998,663

Goods in transit 49,034,859 851,474

162,352,192 117,774,685

9. Trade and other payables

2021 2020

Trade payables 126,574,862 104,126,048

Other payables 87,916,624 81,220,464

214,491,486 185,346,512

Other payables include $Nil (2020: $779,222) payable to a director for vacation leave (see note 18).

10. Long-term loans

(i) BNS term loan – cold room construction - 12,222,215

(ii) BNS mortgage – Suthermere Road and South Road - 31,288,803

(iii) BNS term loan – novelty line - 63,518,520

(iv) BNS term loan – ammonia compressor - 25,384,620

(v) CIBC term loan 157,000,000 -

(vi) CIBC demand instalment loan 56,905,252 -

213,905,252 132,414,158

Less current portion (6,977,778) (27,441,951)

206,927,474 104,972,207

(i) This loan was repayable in monthly installments with fixed interest rate at 9.5% per annum. The loan

was paid out during the year.

(ii) The mortgage was repayable in monthly installments with fixed interest rate at 7.49% per annum. The

mortgage was paid out during the year.

(iii) This loan was repayable in monthly installments with fixed interest rate at 7.45% per annum. The loan


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10. Long-term loans (continued)

(iv) This loan was repayable in monthly installments with fixed interest rate at 7.45% per annum. The loan


(v) The purpose of this loan is to refinance debts with Bank of Nova Scotia Jamaica. The loan is repayable

within a 60-month term with a balloon payment at the end of the term. Interest is at floating 6 months

weighted average treasury bill yield plus 4.80% per annum, reset quarterly. Interest rate is subject to a

cap of 6.50% and all in floor rate of 5.80%.

(vi) The purpose of the loan is to the provide funding for capital expenditure. The loan attracts fixed interest

at 5.80% per annum and is payable quarterly.

The CIBC facilities are secured as follows:

(i) First fixed and floating charge debenture stamped for J$737,000,000 with power to upstamp giving

CIBC FirstCaribbean a first ranking floating charge over all other present and future property and assets.

(ii) First priority right of mortgage stamped for J$61,750,000 with power to upstamp giving CIBC

FirstCaribbean a first fixed mortgage and charge over the property located at 2A and 2D Suthermere

Road, Kingston 10, registered at Volume 1288 and 1293 and Folios 348 and 575.

(iii) First priority right of mortgage stamped for J$104,000,000 with power to upstamp giving CIBC

FirstCaribbean a first fixed mortgage and charge over the property located at 3 South Road, Kencot

Park, Kingston 10, registered at Volume 1101 and Folio 714.

11. Deferred tax liability

Deferred tax liability is attributable to the following:

Recognised Recognised

2019 in income 2020 in income 2021

(note 16) (note 16)

Property plant and equipment (7,613,554) (7,115,195) (14,728,749) (1,729,830) (16,458,579)

Accounts receivable (48,385) 42,956 (5,429) (2,337) (7,766)

Unrealized foreign

exchange loss/gain 13,233 100,672 113,905 ( 368,900) (254,995)

Leases, net - 465,682 465,682 908,450 1,374,132

Accounts payable 743,367 21,699 765,066 5,201 770,267

(6,905,339) (6,484,186) (13,389,525) (1,187,416) (14,576,941)

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12. Share capital

2021 2020

Authorised:

5,100,000,000 ordinary shares of no par value

Issued and fully paid:

378,568,115 ordinary shares of no par value 111,411,290 111,411,290

13. Gross operating revenue

Gross operating revenue represents the invoiced value of sales, after deduction of returns, discounts

allowed, and General Consumption Tax.

14. Expenses by nature

2021 2020

(a) Cost of operating revenue:

Depreciation 61,839,499 61,605,368

Depreciation right of use assets 3,960,209 5,005,222

Other costs of operating revenue 136,000,280 88,052,451

Raw materials and consumables 754,640,226 720,655,361

Repairs and maintenance 37,461,780 58,312,941

Staff costs (note 19) 96,236,710 111,449,047

Utilities 154,910,726 115,666,839

1,245,049,430 1,160,747,229

(b) Administrative:

Accounting fees 4,800,000 4,813,750

Audit fees 3,200,000 2,400,000

Cleaning and sanitation 30,026,310 40,622,788

Depreciation 33,187,557 32,130,633

Depreciation right of use assets 17,685,224 16,428,180

Directors’ emoluments

- Fees 2,128,833 2,161,542

- Management remuneration 8,043,919 11,546,767

General insurance 11,018,524 8,789,944

Lease interest 9,481,508 6,520,487

Other administrative expenses 9,062,291 7,633,925

Professional fees 41,465,095 11,082,694

Rent 1,478,150 717,500

Repairs and maintenance 27,491,440 20,935,582

Security 28,015,115 26,424,135

Staff costs (note 19) 150,622,568 169,523,394

Utilities 50,149,840 33,591,696

427,856,374 395,323,017

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14. Expenses by nature (cont’d)

2021 2020(c) Selling and distribution:

Advertising and promotion 16,766,235 27,667,706Licenses and permits 394,147 512,717Motor vehicle expenses 7,513,498 6,046,744Travelling and entertainment 939,824 1,868,110Subsistence allowance 204,491 50,000

Transportation and delivery 34,838,392 32,155,961

60,656,587 68,301,238

Total administrative and selling and distribution expenses 488,512,961 463,624,255

15. Finance costs

2021 2020

Bank and other charges 6,340,401 4,701,661

Interest expense 11,951,987 12,712,752

Net foreign exchange loss 2,970,306 2,856,354

21,262,694 20,270,767

16. Taxation

(a) The expense is based on the profit for the year adjusted for tax purposes and is made up as follows:

2021 2020

Current tax expense:

Income tax 16,632,312 1,117,971

Deferred tax expense:

Origination and reversal of temporary

differences (note 11) 1,187,416 6,484,186

Total taxation expense 17,819,728 7,602,157

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16. Taxation (cont’d)

(b) Reconciliation of actual tax charge:

2021 2020

Profit before taxation 118,500,335 62,171,556

Computed ‘expected’ tax at 25% (2020: 25%) 29,625,084 15,542,889

Difference between profit for financial statements

and tax reporting purposes on:

Depreciation and capital allowances 7,870,440 ( 3,757,528)

Expenses not deductible for tax purposes ( 4,442,194) ( 3,660,151)

Understatement of prior year tax expense 699,355 297,459

Remission of income taxes [note 16(c)] ( 15,932,957) ( 820,512)

Actual tax charge 17,819,728 7,602,157

(c) Tax remission

The company’s shares were listed on the Junior Market of the Jamaica Stock Exchange (JSE) on May

17, 2013. Consequently, the company is eligible for remission of income taxes for a period of ten years,

provided the following conditions are met:

(i) The company’s shares remain listed for at least 15 years and is not suspended from the JSE for any

breaches of its rules.

(ii) The subscribed participating voting share capital of the company does not exceed $500 million.

(iii) The company has at least 50 participating voting shareholders.

The remission will apply in the following proportions:

(a) Years 1 to 5 (May 17, 2013 – May 16, 2018) – 100%

(b) Years 6 to 10 (May 17, 2018 – May 16, 2023) – 50%

At the reporting date, the financial statements have been prepared on the basis that the company will

have the benefit of tax remissions of 50%.

17. Earnings per share

Earnings per share is computed by dividing the profit for the year by the number of shares of 378,518,115

(2020: 378,518,115) in issue for the year.

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18. Related party balances and transactions

The statements of financial position, and profit or loss and other comprehensive income include balances

and transactions arising in the ordinary course of business during the year, with related parties as follows:

2021 2020

Balances with related parties:

(i) Due to director (note 9) - 779,222

(ii) Due from related party, Scoops Unlimited Limited (note 7) 33,925,593 12,021,049

Transactions with related parties:

(iii) Staff loan, net 1,147,482 628,567

(iv) Sale of ice cream mix 144,515,700 177,059,500

(v) Sale of ice cream 18,636,700 37,653,100

19. Staff costs

2021 2020

Employer’s statutory contributions 19,915,231 23,658,450

Salaries, wages and other staff benefits 226,944,047 257,313,991

246,859,278 280,972,441

Included in profit or loss as follows

Administrative 150,622,568 169,523,394

Direct labour 96,236,710 111,449,047

246,859,278 280,972,441

20. Dividends

During the year, dividends of $0.029 (2020: $0.048) per share were declared and paid to the shareholders

on records at September 16, 2020 (2020: September 6, 2019).

21. Financial instruments

(a) Financial risk management

The company has exposure to the following risks from its use of financial instruments:

• credit risk

• liquidity risk

• market risk

This note presents information about the company’s exposure to each of the above risks, the company’s

objectives, policies and processes for measuring and managing risk, and the company’s management of

capital. Further quantitative disclosures are included throughout these financial statements.

The Board of Directors has overall responsibility for the establishment and oversight of the company’s

risk management framework. The company, through its training and management standards and

procedures, aims to develop a disciplined and constructive control environment in which all employees

understand their roles and obligations.

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21. Financial instruments (continued)

(a) Financial risk management (continued)

(i) Credit risk:

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial

instrument fails to meet its contractual obligations, and arises principally from the company’s

receivables from customers and cash and cash equivalents. The company generally does not

require collateral in respect of financial assets, materially trade receivables. Management has a

credit policy in place to minimise exposure to credit risk. Credit evaluations are performed on all

customers requiring credit.

The company’s exposure to credit risk is influenced mainly by the individual characteristics of each

customer. The maximum exposure to credit risk is represented by the carrying amount of each

financial asset at the reporting date.

Cash and cash equivalents

The company manages credit risk on cash and cash equivalents by maintaining cash resources

with financial institutions that are appropriately licensed and regulated; and have high credit rating

therefore, management believes that exposure to credit risk is minimal.

Impairment on cash and cash equivalents have been measured at 12 months expected loss basis

and reflects the short maturities of the exposures. The company considered that cash and cash

equivalents have low credit risk. No impairment allowances were recognised as at February 28,

2021 and February 29, 2020.

Trade receivables

Management has established a credit policy under which its customers are analysed for

creditworthiness prior to being offered a credit facility. This includes credit evaluations on

new customers and procedures for the recovery of amounts owed by defaulting customers.

Management has procedures in place to restrict customer service if the customers have not cleared

outstanding debts within the credit period. In monitoring customer credit risk, customers are

categorised according to their credit characteristics, including whether they are an individual or

company, or aging profile and existence of previous financial difficulties.

The company’s average credit period on the sale of its products is 30-60 days. Some trade

receivables are provided for based on the estimate of amounts that would be irrecoverable,

determined by taking into consideration past default experience, current economic conditions and

expected receipts and recoveries. Management also considers the factors that may influence the

credit risk of the customer base, including the default risk associated with the industry and country

in which the customers operate. The customer is allowed up to 90 days after each invoice date to

submit payment of amounts owing to the company.

Trade receivables also includes amounts receivable from a related party. The risk is managed on a

group basis, by off-setting balances where necessary.

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(i) Credit risk (continued):

Exposure to credit risk (continued):

Trade receivables (continued)

Expected credit loss assessment

The company allocates each exposure to a credit risk grade based on the data that is determined

to be predictive of the risk of loss (including but not limited to external ratings, audited financial

statements, management accounts and cash flow projections and available press information about

its customers) and applying experienced credit judgement.

Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk

of default and are aligned to external credit ratings, where available. Exposure within each credit

risk grade and an ECL rate is calculated for the company’s customer based on delinquency status

and actual historical credit loss experience.

The company uses an allowance matrix to measure ECLs of trade receivables. The provision matrix

is based on its historical observed default rates over the expected life of the trade receivables and

is adjusted for forward looking estimates.

Loss rates are calculated based on the probability of a receivable progressing through successive

stages of delinquency to write-off, current conditions and the economic conditions over the

expected lives of the receivables.

The following table provides information about the exposure to credit risk and ECL for trade

receivables as at the reporting date:

2021

Weighted GrossAverage loss Carrying Loss Credit

Age categories rate Amount Allowance Impaired

Current (not past due) 0.06% 69,371,841 44,474 No

Past due 31 - 60 days 1.25% 2,626,875 32,838 No

Past due 61- 90 days 2.50% - - No

More than 90 days 100% 1,560,664 1,560,664 Yes

73,559,380 1,637,976

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(i) Credit risk (continued):

Exposure to credit risk (continued):

Trade receivables (continued)

Expected credit loss assessment (continued)

The following table provides information about the exposure to credit risk and ECL for trade

receivables as at the reporting period (continued):

2020

Weighted Gross

Average loss Carrying Loss Credit

Age categories rate Amount Allowance Impaired

Current (not past due) 0.09% 42,516,481 37,118 No

Past due 31 - 60 days 1.25% 55,676 696 No

Past due 61- 90 days 2.50% 24,728 618 No

More than 90 days 100% 3,403,695 3,403,695 Yes

46,000,580 3,442,127

(ii) Liquidity risk:

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they

fall due. The company’s approach to managing liquidity is to ensure, as far as possible, that it will

always have sufficient liquid resources to meet its financial liabilities when due, under both normal

and stressed conditions, without incurring unacceptable losses or risking damage to its reputation.

Liquidity risk may result from an inability to sell a financial asset at, or close to, its fair value.

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(ii) Liquidity risk (continued):

The following are the contractual maturities of financial liabilities measured at amortised cost. The

tables show the undiscounted cash flows of non-derivative financial liabilities, including interest

payments, based on the earliest date on which the company can be required to pay.

2021

Carrying

amount

Contractual

cash flows

Less than

1 year

2 to 5 years Over 5

years

Loans 213,905,252 270,038,127 15,909,142 121,225,071 132,903,914

Trade and other payables 214,191,486 214,191,486 214,191,486 - -

Lease liabilities 104,037,475 127,730,956 24,488,288 81,878,103 21,364,624

532,134,213 611,960,569 254,588,916 203,103,174 154,268,538

2020

Carrying

amount

Contractual

cash flows

Less than

1 year

2 to 5 years Over 5

years

Loans 132,414,158 156,763,463 36,426,017 120,337,446 -

Trade and other payables 185,346,512 185,346,512 185,346,512 - -

Lease liabilities 99,161,328 119,474,968 27,011,214 77,740,306 14,723,448

416,921,998 461,584,943 248,783,743 198,077,752 14,723,448

There was no change to the company’s exposure to liquidity risk during the year, or the manner in

which it measures and manages the risk.

(iii) Market risk:

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest

rates, will affect the company’s income or the value of its financial instruments. The objective of

market risk management is to manage and control market risk exposures within acceptable limits,

while optimising the return on risk.

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(iii) Market risk (continued):

(i) Currency risk:

Currency risk is the risk that the value or cash flows of a financial instrument will fluctuate due

to changes in foreign exchange rates.

The company is exposed to currency risk on transactions that are denominated in a currency

other than its functional currency. The main currencies giving rise to this risk are the United

States dollar (US$) and the Canadian dollar (CDN$).

The company ensures that the risk is kept to an acceptable level by monitoring its risk

exposure and by maintaining funds in US$ as a hedge against adverse fluctuations in exchange

rates.

Exposure to currency risk:

The company’s exposure to foreign currency risk at the reporting date was as follows:

2021 2020

J$

Equivalent

US$ CDN$ J$ Equivalent US$ CDN$

Financial assets 46,596,307 298,603 15,854 46,419,957 293,458 66,014

Financial

liabilities (62,419,015) (413,613) (4,464) (84,814,566) (329,175) (402,843)

Net position (15,822,708) (115,010) 11,390 (38,394,609) ( 35,717) (336,829)

Exchange rates in terms of the Jamaica dollar as at the reporting date were US$1: J$149.60

(2020: US$1: J$135.86) and CDN$1: J$120.96 (2020: CDN$1: J$99.59).

Sensitivity analysis:

A 6% (2020: 6%) weakening of the US$ and CDN$ against the J$ would increase profit for the

year by $952,333 (2020: increase profit by $2,303,676).

A 2% (2020: 4%) strengthening of the US$ and CDN$ against the J$ would increase profit for

the year by $ 317,444 (2020: decrease profit by $1,535,718).

The analysis assumes that all other variables, in particular interest rates, remain constant. The

analysis is done on the same basis as for 2020.

(ii) Interest rate risk:

Interest rate risk is the risk that the value or cash flows of a financial instrument will fluctuate

due to changes in market interest rate.

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(iii) Market risk (continued):

(ii) Interest rate risk (continued):

The company minimises interest rate risk by investing mainly in fixed rate instruments and

contracting liabilities at fixed rates, where possible. The company’s interest rate risk arises

mainly from bank loans.

At the reporting date, the interest profile of the company’s interest-bearing financial instruments

was:

Carrying amount

2021 2020

Fixed rate:

Financial assets 79,045,976 88,157,059

Financial liabilities (213,905,252) (231,575,486)

(134,859,276) (143,418,427)

Fair value sensitivity analysis for financial instruments:

The company does not account for any financial instrument at fair value, therefore a change

in interest rates at the reporting date would not affect the carrying value of the company’s

financial instruments.

Cash flow sensitivity analysis for financial instruments:

The company does not have any significant cash flow exposure to changes in rates because

the majority of the loans and cash and cash equivalents are at fixed rates of interest and those

at variable rates are insignificant.

(b) Capital management:

The Board seeks to maintain a strong capital base to maintain stakeholders’ confidence. The

company defines capital as total equity. There were no changes in the company’s approach to capital

management during the year.

The company is not subject to any externally-imposed capital requirements, except as shown in note

16(c).

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22. Impact of COVID-19

The World Health Organisation declared the novel Coronavirus (COVID-19) outbreak a pandemic on March

11, 2020 and the Government of Jamaica declared the island a disaster area on March 13, 2020. The

pandemic and the measures to control its human impact have resulted in disruptions to economic activity,

business operations and asset prices. This could have significant negative financial effects on the company,

depending on factors such as (i) the duration and spread of the outbreak, (ii) the restrictions and advisories

from Governments, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of

which are highly uncertain and cannot be estimated reliably.

The company has assessed the situation, as part of its business continuity and contingency planning. While

the pandemic has affected the operations of the company, the effects are not considered significant as the

company continues to generate revenue and cash flows at the pre-pandemic levels.

FORM OF PROXY


3 South Road

Kingston 10, Jamaica (West Indies)

I/We______________________________________of_________________________________ in the Parish

of ___________________________________being Member/members of the above named company hereby

appoint___________________________________ of _________________________________or failing him/

her___________________________ of _____________________________ as my/our proxy to vote for me/

us and on my/our behalf at the Annual General Meeting of the Company to be held at the Knutsford Court Hotel,

16 Chelsea Avenue, Kingston 5, New Kingston on Tuesday, October 26, 2021 at 10 a.m. and at any adjournment

thereof.

Resolutions For Against

Resolution No. 1 Adoption of Directors and Auditors Report, Financial Statement for year ended February 28, 2021

Resolution No. 2 Election of Director retiring by rotation - Carol Clarke Webster

Resolution No. 3 Election of Directors retiring by rotation - Wayne Wray

Resolution No. 4 Election of Directors retiring by rotation - Mark McKenzie

Resolution No. 5 Ratify interim Dividends paid on October 2, 2020

Resolution No. 6 Ratify interim Dividends paid on July 14, 2021

Resolution No. 7 Remuneration of Directors

Resolution No. 8 To appoint Auditors and to authorise the Directors to fix the remuneration of the Auditors

Resolution No. 9 To amend the Articles of Incorporation

Signed this _________________day of _______________________________2021

Signature ____________________________________________

Notes:

(1) An instrument appointing a proxy, shall, unless the contrary is stated thereon be valid as well for any adjournment of the

meeting as for the meeting to which it relates and need not be witnessed.

(2) If the appointer is a corporation, this form must be under its common seal or under the hand of an officer or attorney duly

authorised in writing.

(3) In the case of joint holders, the vote of the senior will be accepted to the exclusion of the votes of others, seniority being

determined by the order in which the names appear on the register.

(4) To be valid, this form must be received by the Registrar of the Company at the address given below not less than 48 hours

before the time fixed for holding the meeting or adjourned meeting.

(5) The proxy form should bear stamp duty of One Hundred dollars ($100.00) which may be in the form of adhesive stamp duly

canceled by the person signing the proxy form.

REGISTRAR AND TRANSFER AGENTS

Jamaica Central Securities Depository Limited

40 Harbour Street, Kingston

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